The Empire State Manufacturing Index plummeted 34 points in March to register -21.5, its steepest point drop on record and its lowest level since 2009. Forty-two percent of New York manufacturers surveyed reported that business conditions had worsened during the period. The new orders index tumbled 31 points to -9.3 while shipments fell 20.6 points […]
The world is changing, it is not ending. I expect the steel industry will go through some changes as well. In Europe, the car makers are closing manufacturing facilities. Europe seems to be a couple weeks ahead of us here in the United States. Will we see the same plant closures in a couple of […]
Steel prices are as unpredictable as the spread of a rogue virus, but one symptom of COVID-19 is likely to be lower steel prices. As of this writing on March 13, the price of flat rolled steel products had yet to see much effect from the global panic over the coronavirus. Steel Market Update’s latest […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: Does anyone else feel like riding a roller coaster for the next six months? We have been on one for about seven weeks now and there is no end in sight. The time has arrived to consider what […]
Cleveland-Cliffs has officially closed on its acquisition of AK Steel Holding Corporation, integrating the value-added steelmaker with Cliff’s iron ore operations. The combined company will be led by Cleveland-Cliffs Chairman, President and CEO Lourenco Goncalves. “This is a new era for Cleveland-Cliffs as a producer of differentiated, high quality iron ore, metallics and steel in […]
By CRU Analyst Arshiya Sibia and Research Manager Paul Butterworth, from CRU’s Steel Monitor Current information from our China team shows that steel demand is closely tracking our base case forecast for the impact of Covid-19, though steel production remains slightly higher than we had forecast. While our forecast was for steel demand to return […]
When the media began reporting on the COVID-19 (coronavirus) a few weeks back, Majestic Steel sprang into action. This morning Steel Market Update spoke with Todd Leebow, CEO of Majestic Steel in Cleveland, Ohio, about how his company is dealing with the risks associated with the virus. As soon as the risk of the virus […]
When the media began reporting on the COVID-19 (coronavirus) a few weeks back, Majestic Steel sprang into action. This morning Steel Market Update spoke with Todd Leebow, CEO of Majestic Steel in Cleveland, Ohio, about how his company is dealing with the risks associated with the virus. As soon as the risk of the virus […]
The following article discussing the global ferrous derivatives markets was written by David Feldstein. As an independent steel market analyst, advisor and trader, we believe he provides insightful commentary and trading ideas to our readers. Note that Steel Market Update does not take any positions on HRC or scrap trading, and any recommendations or comments […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Steel Metallics Monitor The CRU metallics price indicator (CRUmpi) rose slightly by 1.3 percent m/m to 206.4 (see chart). While this is broadly stable it bucked the trend compared to steel markets, which came under relatively more price pressure. Structurally, most markets were similar in condition to […]
Is it me, or has the world become much more complicated recently? The NBA has suspended games indefinitely. The NCAA “March Madness” basketball tournament will be played in empty stadiums. Princess Cruises just announced they are cancelling cruises for the next 60 days. Europeans will not be allowed to fly to the United States for […]
In February, job creation beat expectations, and there is no sign of a virus effect even in the details. Net job creation in February was a surprising 273,000. In addition, December was revised up by 37,000 and January up by 48,000. Rising employment and wages are the main contributors to GDP growth because personal consumption […]
February’s employment report showed a turnaround in manufacturing, while construction continued to boom. The net increase in employed persons was 273,000 in February, the same as an upwardly revised result for January. In February, 42,000 jobs were created in construction and 15,000 jobs in manufacturing. The private sector gained 228,000 jobs in February and government […]
In January, total construction continued to boom with a 5.1 percent year-over-year growth rate Total construction is enjoying a remarkable turnaround with positive momentum in all sectors. The January results for total construction spending yielded the best growth rate for 15 months. Growth is being led by state and locally funded work including infrastructure, but […]
Price negotiations have tightened up noticeably as the mills seek to collect the $40 price increase they announced last week. Significantly more of the service center and manufacturing executives responding to Steel Market Update’s questionnaire this week said the mills are holding the line on prices, especially for hot rolled and galvanized. In the hot […]
“Beyond seasonally subdued,” is how Ryerson Holding CEO Eddie Lehner described demand in the fourth quarter of 2019. Ryerson shipped 541,000 tons last quarter, down 6.2 percent year-over-year and 9.5 percent lower than in the third quarter. Revenue decreased 17.1 percent to $961.5 million compared to Q4 2018 and net income was $26.4 million. Average […]
Thomas Gibson, president and CEO of the American Iron and Steel Institute, will retire this fall. A search for his successor begins immediately. Gibson has led AISI since September 2008. Under his leadership, the institute successfully advocated for legislation to strengthen the trade laws against unfair trade practices and level the playing field for steel […]
Earlier today SMU heard the gloomiest economic forecast since the Great Recession of 2008-2009. John Anton, IHS Markit Associate Director Pricing & Purchasing, came roaring right out of the gate with the IHS view on how we should be thinking about the coronavirus in the United States. He told attendees at the FMA Annual Meeting […]
ArcelorMittal has big plans for AM/NS Calvert. Lakshmi Mittal, chairman of ArcelorMittal, hinted at a multi-billion dollar investment in Alabama during a press conference with President Donald Trump in India last week. Mittal thanked Trump for his involvement in the U.S. steel industry, calling the Section 232 tariffs a “big lesson for the rest of […]
The coronavirus has begun to affect business in the United States, according to the latest Federal Reserve “Beige Book.” The economy is moving forward at a modest to moderate pace, but growth is uneven. The virus appears to be negatively impacting travel and tourism in the U.S., which showed only moderate to flat growth in […]
By CRU Chief Economist Jumana Saleheen, from CRU’s Steel Sheet Products Market Outlook Two pieces of news have led us to lower our global forecasts for 2020. First, disruptions caused by the Covid-19 epidemic are expected to lead to a sharp downturn in near-term global growth, followed by a sharp recovery later in the year. […]
In just a few weeks from the first known case, the COVID-19 outbreak has wreaked havoc on the global manufacturing sector. The J.P. Morgan Global Manufacturing PMI posted a steep decline in February, falling to 47.2 from 50.4 in January, its lowest level since May 2009. New orders and production fell at record rates in […]
U.S. manufacturing activity grew only slightly in February, according to the latest Manufacturing ISM Report On Business. The Institute for Supply Management reported that the February PMI decreased 0.8 points to 50.1, just above the no-change mark of 50. The PMI for new orders fell into contraction at 49.8, while production dropped four points to […]
NLMK USA has filed a complaint with the U.S. Court of International Trade alleging that NLMK’s requests for steel slab exclusions from Section 232 of the Trade Expansion Act have been wrongfully denied. The Indiana and Pennsylvania mills use imported steel slab to process into finished products. The 250-255 mm thick slab (nominally “10 inch”) […]
Construction spending increased 1.8 percent to $1.369 trillion in January, according to a new analysis of federal data by the Associated General Contractors of America. “Public spending on infrastructure, along with single-family housing, was exceptionally robust in January,” said Ken Simonson, the association’s chief economist. “While overall economic conditions remain favorable, future construction spending levels […]
U.S. Steel continues to make interesting moves having now purchased the balance of the ownership in USS/Posco (UPI), 49.9 percent of Big River Steel with an option to purchase the balance, the $1 billion+ capital investment in the endless casting, rolling and cogeneration at Mon Valley Works and the $750 billion investment in Gary Works. […]
Gauging how COVID-19 will impact global commerce, specifically the world’s steel industry, is almost as difficult to predict as the spread of the virus itself. CRU analysts will tackle the subject in a new webinar this week. As CRU Senior Analyst Erik Hedborg reports, the news is not all bad. For one, the pace of […]
The Chicago Business Barometer nearly emerged from contraction in February. The manufacturing index, produced by MNI Indicators, gained 6.1 points to post 49.0, the highest level since August 2019. The three-month average for the index edged up to 46.7. Production reached an eight-month high, gaining 8.3 points to register 51.0 after seven straight months below […]
Steel Market Update raised its Flat Rolled Price Momentum Indicator to Neutral yesterday from Lower in anticipation of a price hike believed imminent from the mills. As expected, Nucor and U.S. Steel both announced increases today of $40 per net ton on all new spot orders of hot rolled, cold rolled and galvanized steel, effective […]
Steel Market Update raised its Flat Rolled Price Momentum Indicator to Neutral yesterday from Lower in anticipation of a price hike believed imminent from the mills. As expected, Nucor and U.S. Steel both announced increases today of $40 per net ton on all new spot orders of hot rolled, cold rolled and galvanized steel, effective […]